Tesco has named John Allan as its new Chairman, succeeding Richard Broadbent who announced in October 2014 he would step down in the wake of the supermarket's £263 million profit overstatement. The retailer’s senior independent director Patrick Cescau said that Allan's appointment had been a unanimous decision after “a deep and thorough” selection process.
Allan, a former Chief Executive of logistics group Exel, is tasked with restoring Tesco's battered reputation with investors and is due to be active in post by March 1.
Allan is currently chairman of house builder Barratt Developments, co-deputy chairman of electrical retailer Dixons Carphone and sits on the board of Royal Mail, but he will step down from the latter two positions when he joins Tesco.
Ex-chairman Richard Broadbent, in the role since 2011, said in October 2014 that he would quit, reflecting “the very important principle of accountability”. Last year Tesco issued four profit warnings, sending its shares to a 14-year low.
Allan will be paid an annual salary of £650,000, fixed for three years. He has direct experience of the grocery sector, having worked for Fine Fare in his early career.
“I'm very pleased to be taking on this role at such a critical moment for the business and look forward to working with the new executive team and the board,” Allan said in a statement from Tesco.